Tax Credits for Buying Electric and Alternative Motor Vehicles

These tax credits are available for 2018 Tax Returns:

Alternative Motor Vehicle Tax Credit

The Alternative Motor Vehicle Tax Credit is a credit that only applies to new cars. It is for placing a qualified fuel cell vehicle in service and may only be claimed by the original purchaser of the vehicle. A qualified fuel cell motor vehicle is a vehicle that is propelled by power from one or more cells which convert chemical energy directly into electricity.

Below is a list of certified fuel cell motor vehicles that qualify for the credit:

  • Mercedes-Benz 2012 F-Cell
  • Honda 2012 FCX Clarity Fuel Cell Vehicle
  • Honda 2011 FCX Clarity Fuel Cell Vehicle
  • Honda 2010 FCX Clarity Fuel Cell Vehicle
  • Honda 2009 FCX Clarity Fuel Cell Vehicle
  • Honda 2008 FCX Clarity Fuel Cell Vehicle

To claim the credit, complete Form 8910 and attach it to Form 1040. On efile.com, you can prepare and efile Form 8910 along with Form 1040. Once you answer a few simple questions about your tax situation, we will generate the forms for you and help you complete them accurately.

Qualified Plug-In Electric Drive Motor Vehicle Tax Credit

The Qualified Plug-In Electric Drive Motor Vehicle Credit is a credit for placing a new qualified plug-in electric drive motor vehicle in service. This is a vehicle that is run to a significant extent by an electric motor and draws electricity from a battery and is capable of being recharged from an external source of electricity. The IRS tax credit is for $2,500 to $7,500 per new EV (Electric Vehicle) purchased for use in the U.S. Starting on January 1, 2019, the phase out of the Plug-In Electric Vehicle credit begins and after Dec. 31, 2019, the credit will no longer be available.

Cars That Qualify for the EV Credit:

All of the following plug-in hybrids and electric cars qualify for the Credit for Qualified Plug-In Electric Drive Motor Vehicles and have different credit amounts depending on the year of the vehicle:

  • American Honda Motor Co., Inc Accord and Clarity Plug-In Hybrid
  • AMP GCE and MLE Electric Vehicle
  • Audi A3 e-tron, A3e-tron ultra
  • Azure Dynamics Transit Connect Electric Vehicle
  • BMW i3 Sedan, BMW i3 Sedan with Ranger Extender, BMW i3s, BMW i3s with Range Extender, BMW i8 BMW i8Coupe, BMW i8 Roadster, BMW X5 40e, BMW 330e, BMW i3 (60Ah) Sedan, BMW 740e, BMW 740e xDrive, MINI Cooper S E Countryman ALL4
  • Boulder Electric Delivery Van DV-500, Electric Shuttle DV500, Electric Flat Bed DV-500, Electric Service Body DV-500
  • BYD Motors e6 Electric Vehicle
  • CODA Sedan (Electric Vehicle manufactured by CODA Automotive Inc.)
  • Electric Vehicles International (EVI)-MD (Medium Duty) Electric truck, and EVI-WI (Walk-In) Electric truck
  • EMC Model E36 7 Passenger Wagon, Model E36t Pick-Up truck, and Model E36v Utility Van
  • FCA (Fiat Chryser Automobiles) Fiat 500e, Chrysler Pacifica PHEV
  • Fisker Automative Karma Sedan
  • Ford Focus Electric, Ford C-MAX Energi, Ford Fusion Energi
  • GMC Chevrolet Volt, Chevrolet Bolt, Chevrolet Spark EV, Cadillac ELR, Cadillac CT6 Plug-In
  • Hyundai Sonata Plug-in Hybrid Electric, Ioniq Battery Vehicle, Ioniq Plug-In Hybrid Electric
  • Jaguar I-Pace (First Edition, HSE, SE, S models), Land Rover Range Rover PHEV (HSE), Land Rover Range Rover Sport PHEV (HSE)
  • Kandi EX3, Kandi K22
  • Karma Revero
  • Kia Soul Electric, Optima Plug-In Hybrid, Niro Plug-In Hybrid
  • Mercedes-Benz smart Coupe/Cabrio EV, B-Class EV (B250e), S550e PHEV, GLE550e 4m PHEV, GLC350e 4M PHEV, C350e PHEV, smart Coupe EV, smart Cabrio EV
  • Mitsubishi i-MiEV (Electric Vehicle), Outlander PHEV
  • Nissan Leaf
  • Porsche 918 Spyder, Panamera S E Hybrid, Cayenne S E-Hybrid, Panamera 4PHEV - E-Hybrid, E-Hybrid Sport Turismo, E-Hybrid Executive, Turbo S E-Hybrid, Turbo S E-Hybrid Executive
  • Smart Fortwo Electric Drive Vehicle
  • Subaru Crosstrek Hybrid
  • Tesla (Phase out has begun) - Tesla Roadster, Tesla Model S, Model X, Model 3 Long Range
  • Think City EV (Electric Vehicle)
  • Toyota Prius Plug-in Electric Drive Vehicle, Prius Prime Plug-in Hybrid, RAV4 EV
  • VIA Motors 2500 Extended Range Electric Passenger Van, VIA 1500 Extended Range Electric Truck 4WD (all body styles), VIA 2500 Extended Range Electric Cargo Van, VIA 1500 Extended Range Electric Truck 2WD (All body styles)
  • Volkswagon e-Golf, Audi A3 e-tron, Audi A3 e-tron ultra
  • Volvo XC90, XC90 Excellence, XC-90 T8 Twin Engine Plug in Hybrid, XC60, S90
  • Wheego LiFe Electric Vehicle
  • Zenith Electric Van, Electric Minibus

To claim the credit on efile.com, you can prepare and efile Form 8936 along with Form 1040. Once you answer a few simple questions about your tax situation, we will generate the forms for you and help you complete them accurately. If you bought a qualifying vehicle in the past 3 years and you did not claim it on your tax return, you can still get the credit by filing an amended return.

More green tax savings: find out how to get a tax credit for energy-efficient improvements to your home.

See what other tax credits and tax deductions for which you may qualify to claim on your tax return.